What To Expect In Markets This Week: GOOGL, MSFT, AMZN, INTC, HOOD, LLY Earnings, Fed Meeting And More

• Three of the biggest names in the Magnificent 7, Alphabet, Microsoft and Amazon, are set to report quarterly results this week.
• Investors will be looking beyond the headline earnings numbers for signs that the companies’ enormous AI spending is translating into growth.
• The Federal Open Market Committee’s two-day meeting will commence on Tuesday, with the policy decision set to be announced on Wednesday.

U.S. markets are heading into one of the busiest weeks of the earnings season, with a fresh batch of corporate results arriving alongside several closely watched economic and monetary-policy events. Investors will have plenty to digest as Wall Street assesses the health of corporate earnings and the outlook for interest rates.

The spotlight will be particularly intense as several of the biggest names in technology report quarterly results, while the Federal Reserve prepares to make its latest policy decision.

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Later in the week, fresh inflation and economic data could provide another important test for markets as investors look for clues about what comes next for monetary policy.

GOOGL, MSFT, AMZN Earnings In Focus

Three of the biggest names in the Magnificent 7, Alphabet Inc. (GOOG, GOOGL), Microsoft Corp. (MSFT), and Amazon.com Inc. (AMZN), are set to report quarterly results this week, putting Big Tech and its massive AI investments firmly in focus.

Alphabet and Microsoft are scheduled to report Wednesday after the market close, followed by Amazon on Thursday.

Investors will be looking beyond the headline earnings numbers for signs that the companies’ enormous AI spending is translating into growth. Cloud performance, AI monetization and capital expenditure will be among the key areas to watch as Wall Street weighs whether the current pace of investment can continue.

According to Fiscal.ai data, Alphabet is expected to report earnings per share of $3 on revenue of $127.83 billion during the July-September quarter.

Wall Street expects Microsoft to report an EPS of $4.72 on revenue of $90.75 billion, while Amazon is expected to report an EPS of $1.96 on revenue of $202.2 billion.

Intel is another major tech name set to announce its results this week. Analysts expect the chipmaker to report an EPS of $0.4 on revenue of $16.47 billion.

Robinhood Markets Inc. (HOOD), Reddit Inc. (RDDT), Boeing Co. (BA), T-Mobile US Inc. (TMUS), Verizon Communications Inc. (VZ), Eli Lilly & Co. (LLY), Chevron Corp. (CVX), ExxonMobil Holdings Corp. (XOM), PayPal Holdings Inc. (PYPL), Corning Inc. (GLW), and Rivian Automotive Inc. (RIVN), among others, are also to report their results this week.

Fed Meeting Ahead

The Federal Open Market Committee’s (FOMC) two-day meeting will commence on Tuesday, with the policy decision set to be announced on Wednesday.

The central bank is widely expected to leave its benchmark interest rate unchanged at 3.75%-4%, following September’s 25-basis-point hike. Data from the CME FedWatch tool shows that there are 90% odds of the Fed keeping the rates unchanged.

The iShares 20+ Year Treasury Bond ETF (TLT) declined 0.05% in Friday’s after-hours session, while the iShares 7-10 Year Treasury Bond ETF (IEF) edged 0.04% lower.

PCE Report Could Give Investors A Fresh Read On Inflation

Investors will also turn their attention to the latest Personal Consumption Expenditures (PCE) report, with the Fed’s preferred inflation gauge set to provide a fresh look at how price pressures are evolving. The September PCE report is set to be released on Thursday.

According to a Dow Jones estimate compiled by MarketWatch, PCE is expected to rise 0.5% in September on a seasonally adjusted basis, while core PCE is expected to rise 0.3%.

On an annual basis, PCE is expected at 3.7%, while core PCE is expected to be at 3.1%.

The same morning will bring the latest weekly jobless claims, offering a fresh look at labor-market conditions. Initial claims fell to 194,000 in the latest week, near a 57-year low.

During the after-hours session on Friday, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, gained 0.15%; the Invesco QQQ Trust ETF (QQQ) edged up by 0.07%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.13%. Retail sentiment on Stocktwits toward the S&P 500 ETF was in the ‘extremely bearish’ territory at the time of writing.

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